Berkshire Hathaway to buy Alleghany in $11.6bn deal

Under the terms of the deal, Alleghany shareholders will receive $848.02 per share.

Chairman and chief executive Buffett said: "Berkshire will be the perfect permanent home for Alleghany, a company that I have closely observed for 60 years. Throughout 85 years the Kirby family has created a business that has many similarities to Berkshire Hathaway. I am particularly delighted that I will once again work together with my long-time friend, Joe Brandon."

Alleghany president and chief executive Joseph P. Brandon said: "The value of this transaction reflects the quality of our franchises and is the product of the hard work, persistence, and determination of the Alleghany team over decades. As part of Berkshire Hathaway, which epitomises our long-term management philosophy, each of Alleghany’s businesses will be exceptionally well positioned to serve its clients and achieve its full potential."

The deal is expected to close in the fourth quarter of this year and Alleghany will continue to operate as an independent subsidiary of Berkshire Hathaway after closing.